Blue Collar

What is a 'Blue Collar'

A blue collar is a working-class person historically defined by hourly rates of pay and manual labor. A blue collar worker refers to the fact that most manual laborers at the turn of the century wore blue shirts, which could hold a little dirt around the collar without standing out.

This working class stands in contrast to white collar workers, which historically have had the higher-paying, salaried positions to go with their clean and pressed white shirts.

BREAKING DOWN 'Blue Collar'

The term blue collar has in the past implied a certain lack of worker education as well, but those lines are blurred today. Today blue collar workers can be formally educated, skilled and highly paid. They can also earn more annually then some of their white collar counterparts.

The rate of college attendance in the U.S. has skyrocketed in the past 100 years, democratizing the education level once reserved for only wealthy families. Blue collar work does not typically carry a negative connotation in the United States, and has in fact been a source of multi-generational pride for millions, especially in the geographic northeast, where most of country's heavy industry first developed over 150 years ago.

RELATED TERMS
  1. White Collar

    A working class that is known for earning high average salaries ...
  2. Blue Collar Trader

    A trader who has another source of income, and does not trade ...
  3. Collar Agreement

    An arrangement in a merger and acquisition deal that protects ...
  4. Zero Cost Collar

    A type of positive-carry collar that secures a return through ...
  5. Interest Rate Collar

    An investment strategy that uses derivatives to hedge an investor's ...
  6. Fixed Dollar Value Collar

    A floor and cap on the stock component of an acquisition transaction, ...
Related Articles
  1. Retirement

    Blue Collar Vs. White Collar: Different Social Classes?

    Learn about the implications of the words "blue collar" and "white collar" and the connotation each carries for social class and the type of labor performed.
  2. Trading

    Minimize Risk With The Long Collar

    Think your favorite stock is on the way down? This simple option-trading strategy can help you manage your risks without selling the stock.
  3. Trading

    Capitalize On Collars To Enhance Your Trades

    Trade collaring measures current technicals and makes swift adjustments to account for environmental changes.
  4. Trading

    Apple As An Example Of How a Protective Collar Works

    We define a protective collar, using Apple (AAPL) as an example. A protective collar is a combination of a covered call plus long put position.
  5. Trading

    Costless Collars: Because Asset Allocation Is Not Enough

    Collars are extremely flexible, and can be much more beneficial to your portfolio than asset allocation.
  6. Trading

    Market Volatility Strategy: Collars

    Find out which protective or bullish collar will result in your optimal risk/return level.
  7. Managing Wealth

    What is the American Dream in 2016?

    The American Dream is still alive and well, but it looks very different than it used to.
  8. Trading

    How Does a Collar Work?

    Collar refers to a protective options strategy that investors use after a stock has experienced substantial gains.
  9. Trading

    Using LEAPS With Collars

    This options strategy will help you lock in profit while keeping your upside potential.
  10. Markets

    Long on Oil? Hedge Falling Oil Prices with Options

    With no end to the oil slump in sight, here are some risk management strategies using options to protect your oil positions.
RELATED FAQS
  1. What are the best options strategies for investing in the real estate sector?

    Discover two popular options strategies that traders often use to enhance or protect profits when investing in the real estate ... Read Answer >>
  2. How is a short call used in a collar option strategy?

    Learn how a short call is used in a collar option strategy, and see how this strategy has a limited risk and a limited return ... Read Answer >>
  3. How do I start investing in blue chip stocks?

    I've been having an interest to start investing in blue chip stocks, and possibly in a drip account. I need help to know ... Read Answer >>
  4. Is there a mutual fund that specifically includes blue chip stocks?

    I would like to invest in stocks that provide diversification, since I am a beginner. I would like to start off with at least ... Read Answer >>
  5. Should I care about the book value per common share when dealing with a blue chip ...

    See why shareholders of any listed company, even owners of blue chip stock, should care about what the book value per common ... Read Answer >>
  6. How did the Great Recession affect structural unemployment?

    Understand the events in America that led to the Great Recession. Learn about structural unemployment and how it was affected ... Read Answer >>
Hot Definitions
  1. Duration

    A measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. ...
  2. Dove

    An economic policy advisor who promotes monetary policies that involve the maintenance of low interest rates, believing that ...
  3. Cyclical Stock

    An equity security whose price is affected by ups and downs in the overall economy. Cyclical stocks typically relate to companies ...
  4. Front Running

    The unethical practice of a broker trading an equity based on information from the analyst department before his or her clients ...
  5. After-Hours Trading - AHT

    Trading after regular trading hours on the major exchanges. The increasing popularity of electronic communication networks ...
  6. Omnibus Account

    An account between two futures merchants (brokers). It involves the transaction of individual accounts which are combined ...
Trading Center